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Administrative penalties are planned! Xinlai Materials related parties are suspected of insider trading

2024-08-21

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According to the Zhitong Finance APP, Xinlai Materials (300260.SZ) announced that the company's relevant parties (including the company's controlling shareholder and actual controller Li Shuibo, the company's then-board secretary Guo Hongfei, the company's deputy general manager and board secretary Zhu Mengyong, etc.) received the "Preliminary Notice of Administrative Penalty" issued by the Jiangsu Regulatory Bureau of the China Securities Regulatory Commission on August 20, 2024.

The announcement shows that in late January 2018, after Li Shuibo made the decision to let company employees increase their holdings of the company's stocks, he immediately arranged for Guo Hongfei and Zhu Mengyong to be responsible for the implementation. From late January to early February 2018, according to Li Shuibo's decision, Guo Hongfei arranged for Zhu Mengyong to contact company employees and others, clearly informing Li Shuibo that he was willing to lend funds and suggested that they use their own accounts to increase their holdings of the company's stocks. As an insider of the insider information, Li Shuibo took the initiative to provide funds to suggest that many people buy "Xinlai Materials" during the sensitive period of insider information. Among them, Guo Hongfei, Zhu Mengyong, Fang Feng and Jia Qiaoling, after following Li Shuibo's advice, used the funds provided by him to buy "Xinlai Materials" before the insider information was disclosed.

Li Shuibo, Guo Hongfei, Zhu Mengyong, Jia Qiaoling and Fang Feng are suspected of insider trading. The Jiangsu Securities Regulatory Bureau plans to impose administrative penalties: Li Shuibo will be fined 600,000 yuan for suggesting others to buy and sell "Xinlai Materials"; Guo Hongfei will be ordered to deal with the illegally held "Xinlai Materials" in accordance with the law, and Guo Hongfei's illegal gains of 768,400 yuan from insider trading will be confiscated, and a fine of 2,305,100 yuan will be imposed; Zhu Mengyong's illegal gains of 541,600 yuan from insider trading will be confiscated, and a fine of 1,624,800 yuan will be imposed; Jia Qiaoling's illegal gains of 285,500 yuan from insider trading will be confiscated, and a fine of 856,600 yuan will be imposed; Fang Feng's illegal gains of 173,100 yuan from insider trading will be confiscated, and a fine of 519,200 yuan will be imposed.